Recognised stock exchanges must establish detailed product-specific position-limit frameworks. Recognised clearing corporations must maintain risk management frameworks aligned with the CPMI-IOSCO Principles for Financial Market Infrastructures, adopt globally consistent margining practices, maintain sufficient capital for key risks, and conduct stress and liquidity testing. Eligible collateral includes cash, specified securities and gold, while cash and cash equivalents must constitute at least 50% of total liquid assets. Clearing corporations must also be ring-fenced from holding companies and maintain additional capital for orderly recovery or wind-down.

Trading hours are determined through cost-benefit analysis, capped at 23 hours and 30 minutes daily, with settlement required at least once a day. Clearing corporations must collateralise mark-to-market losses on open futures contracts at regular, risk-assessed intervals during trading. Recognised stock exchanges and clearing corporations must maintain risk management systems and infrastructure adequate for their trading hours and settlement arrangements.

Every recognised clearing corporation must establish and maintain a Settlement Guarantee Fund to guarantee settlement of trades executed on a stock exchange. The fund corpus must meet the prescribed minimum based on monthly stress-test value or USD 1 million, whichever is higher, and must be adequate to address clearing member defaults. Periodic stress tests must assess corpus sufficiency. An Authority-approved framework must govern contributions by clearing members, the clearing corporation and stock exchange, and provide for replenishment following a shortfall.

A recognised stock exchange must establish an Investor Education and Protection Fund in accordance with requirements specified by the Authority. This forms part of the general obligations applicable to recognised stock exchanges under the Market Infrastructure Institutions regulatory framework.

Prior approval of the Authority is required before a recognised stock exchange or recognised clearing corporation introduces a new category of securities or offers settlement services for any new category of securities or other permitted financial products. Regulatory consent is therefore a precondition to expansion of products admitted or settlement services offered.

A recognised stock exchange must use a recognised clearing corporation for clearing and settlement of its trades under an agreement between them. It must also extend its arbitration mechanism to resolve disputes or claims arising from the clearing and settlement of trades executed on the exchange.

Recognised market infrastructure institutions must identify core and critical functions and organise them into Critical Operations; Regulatory, Legal, Compliance, Risk Management and Investor Grievances; and other functions, including business development. Functions and personnel within the regulatory, legal, compliance, risk management and investor grievances vertical must be ring-fenced from the other verticals. This replaces the earlier policy-based requirement for segregation of regulatory departments.

Recognised market infrastructure institutions must constitute functional committees, oversight committees and any further committees specified from time to time. The Authority determines the composition, quorum and functions of these committees. Effective 1 November 2024, the framework expressly identifies functional and oversight committees, replacing the earlier general requirement to establish committees as specified.

Code of Conduct obligations apply to the governing board, directors, committee members and key management personnel of every recognised market infrastructure institution. Regulatory action may be initiated for non-compliance with the regulations or the Code of Conduct, or where a conflict of interest arises. Action may include removal or termination of appointment, following a reference or independent initiation, subject to a reasonable opportunity of being heard.

Recognised market infrastructure institutions must maintain boards comprising non-independent directors, public interest directors and a managing director. Public interest directors must elect the chairperson and cannot be fewer than non-independent directors. Director appointments require prior approval, while specified nominees of broker dealers, clearing members and depository participants are barred, subject to exceptions for nominees of scheduled commercial banks or public financial institutions. Public interest director and managing director tenure, age limits and reappointment procedures apply. Boards must document conflict-of-interest procedures and regularly assess board and individual director performance.

Recognised market infrastructure institutions must continuously ensure that directors, key management personnel and shareholders are fit and proper. Fitness requires fairness, integrity, financial integrity, good character and honesty, and absence of prescribed disqualifications, including relevant convictions, pending regulatory recovery proceedings, insolvency, financial unsoundness, wilful default, regulatory restraints, and securities-market-related orders. Listed institutions and acquirers share responsibility for shareholder fitness where the acquired holding reaches the prescribed threshold.

Listing of securities by a recognised market infrastructure institution requires prior approval of the Authority. After obtaining approval, the institution may apply to any stock exchange for listing. Regulatory approval is therefore a precondition to initiating a listing application, while listing may be sought on any stock exchange once that condition is satisfied.

Recognised market infrastructure institutions must submit their shareholding pattern to the Authority quarterly within fifteen days after each quarter ends. Disclosures must identify the ten largest shareholders, with their number and percentage of shares, and name shareholders who acquired shares during the relevant quarter. This establishes periodic transparency over significant ownership and new share acquisitions.

Recognised market infrastructure institutions must maintain an adequate shareholding monitoring mechanism for continuous compliance with applicable shareholding conditions. Monitoring must operate at all times and requires ongoing oversight of shareholding arrangements rather than periodic or reactive verification alone.

Acquisition of equity shares or voting rights representing ten per cent or more of the paid-up equity share capital of a recognised market infrastructure institution requires prior approval. The acquirer must not have a conflict of interest. The institution must verify fit-and-proper declarations and undertakings, then forward the application with its recommendation for approval.

Regulation 18 requires a recognised depository to have minimum qualifying ownership through either a recognised depository or a joint venture of eligible market infrastructure institutions. Other persons may not acquire or hold more than twenty-five per cent of paid-up equity share capital, directly or indirectly, individually or with persons acting in concert. The joint-venture route replaced the earlier consortium route with effect from 1 November 2024.

Shareholding in a recognised clearing corporation must be anchored by eligible market infrastructure institutions. A recognised stock exchange or clearing corporation must hold at least twenty-six per cent of paid-up equity capital, or an eligible consortium must hold at least fifty-one per cent, with recognised stock exchanges holding a majority within the consortium. Other persons may not directly or indirectly, alone or with persons acting in concert, acquire or hold more than twenty-five per cent of paid-up equity capital.

Regulation 16 requires a prescribed ownership structure for a recognised stock exchange. A stock exchange recognised in India or a foreign jurisdiction must hold at least twenty-six per cent of paid-up equity share capital. A qualifying joint venture of market infrastructure institutions is also specified, with a minimum fifty-one per cent holding in the paid-up equity share capital of a recognised clearing corporation. Other persons, alone or acting in concert, cannot directly or indirectly exceed the twenty-five per cent cap in the recognised stock exchange.

Recognised market infrastructure institutions must submit an audited net worth certificate from their statutory auditor each year by 30 September for the preceding financial year. Net worth of recognised stock exchanges and depositories is based on paid-up equity capital and eligible free reserves, subject to prescribed exclusions and deductions. A clearing corporation's net worth is determined by its aggregate liquid assets, including cash, bank balances, fixed deposits, Government securities and other specified instruments.

Recognised market infrastructure institutions must maintain a minimum net worth of USD 3 million at all times. The Authority may prescribe a higher net-worth requirement as a risk-management measure, having regard to the nature and scale of the institution's business.